The Current Expected Credit Loss (CECL) standard, instituted by the Financial Accounting Standards Board (FASB), will take effect in 2020 for SEC registered financial institutions, and for non-public business entities December 31, 2021.

Banks, credit unions, and financial institution holding companies, regardless of size, that file U.S. Generally Accepted Accounting Principles (GAAP) reports are impacted. This new accounting standard may require significant changes to the data a lender maintains and analyzes, and involves a deeper level of modeling, analysis and reporting than previously required.

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Putting the Puzzle Together

Equifax and Moody’s Analytics explore what is needed to help get your organization CECL ready.

CECL may require lenders to capture and retain more data for a much longer period of time than in the past, depending on the method they choose to estimate allowances for credit losses. To prepare for CECL implementation, lenders will need to assess their data for gaps and potential inaccuracies, as additional data may need to be collected or maintained.

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of banks reported ‘data’ as the most challenging CECL task*

of banks have ‘complete and reliable’ data for CECL*

of banks have 10+ years of data*

of banks have a single centralized data source*

No Results

*SOURCE: Deloitte US CECL Survey 2017

Develop a Winning CECL Strategy: 3 Tips for Success

The new accounting standard may require significant changes to the data a lender maintains and analyzes. Gain actionable insights and tips from the eBook to help you gain confidence in your CECL plan.

Access key archived data across multiple portfolios such as retail cards, student loans, mortgage, auto and more to help accurately forecast expected losses and calculate the reserves required under the new CECL standard for both future and current losses.Here are the ways we can help you create a solution that fits your precise needs:

DO IT YOURSELFFor large financial institutions
■ Access the raw data you need to calculate the reserves required via your internally developed CECL models with SmartReserve

■ Leverage Moody’s Analytics to validate your findings

LET US HELP YOUFor mid-sized to large financial institutions
■ Access the raw data you need to calculate the reserves required via your self-developed CECL models with SmartReserve

■ Access a one-stop, cloud-based data and analytic environment, known as Equifax Ignite Direct™, where you can access data and analytic tools and do the work necessary to update, revise or create new models

■ Leverage Moody’s Analytics to validate your findings

LET US DO IT FOR YOUFor smaller banks and credit unions
■ Access a complete solution that includes the data you need to generate a CECL forecast, along with help from Moody’s Analytics to convert to the new standard

SmartReserve from Equifax

Get multiple levels of flexible, business-specific support including data only or data plus analytics, in partnership with Moody’s Analytics.

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